QATAR

Relocation & Recruitment Advice

Overview

Like many Arabic countries, there is no personal income tax in Qatar for any individual. Providing you are a gulf national that has set up a company, there is no tax on businesses either. However, if you are a non-Gulf national, that has set up a business or branch of an international enterprise in Qatar, then the following taxes are applicable; 100,001 - 500,000 (10%), 500,001 - 1million (15%), 1m - 1.5m (20%), 1.5m - 2.5m (25%), 2.5m - 5m (30%) and over 5m being 35%. A further advantage that nationals have over expatriates is that if they invest into a company that is liable to taxation, they as shareholders aren't obliged to pay tax on their potential gains. The Georgian calendar is used for accounting in Qatar, however, there is no set 12 month period for tax returns, and thus companies are entitled to choose themselves when they want to file their tax return. One has to keep in mind that if these requirements aren't met, and the tax return isn't filed on time, there are hefty fines to be assumed a result. These fines can be either QAR 10,000 per month or 2% of tax owed, whichever is greater, and up to a total of 24% of the tax owed. Qatar's economic potential is impressive, to say the least - a 19% average economic growth during 2000-2004. Qatar has an abundance of gas and oil reserves and thrives off of the capital generated from this industry. Nevertheless, banking is also a major industry in Qatar and is ever-growing.

Why choose Qatar

Like many Arabic countries, there is no personal income tax in Qatar for any individual. Providing you are a gulf national that has set up a company, there is no tax on businesses either. However, if you are a non-Gulf national, that has set up a business or branch of an international enterprise in Qatar, then the following taxes are applicable; 100,001 - 500,000 (10%), 500,001 - 1million (15%), 1m - 1.5m (20%), 1.5m - 2.5m (25%), 2.5m - 5m (30%) and over 5m being 35%. A further advantage that nationals have over expatriates is that if they invest into a company that is liable to taxation, they as shareholders aren't obliged to pay tax on their potential gains. The Georgian calendar is used for accounting in Qatar, however, there is no set 12 month period for tax returns, and thus companies are entitled to choose themselves when they want to file their tax return. One has to keep in mind that if these requirements aren't met, and the tax return isn't filed on time, there are hefty fines to be assumed a result. These fines can be either QAR 10,000 per month or 2% of tax owed, whichever is greater, and up to a total of 24% of the tax owed. Qatar's economic potential is impressive, to say the least - a 19% average economic growth during 2000-2004. Qatar has an abundance of gas and oil reserves and thrives off of the capital generated from this industry. Nevertheless, banking is also a major industry in Qatar and is ever-growing.

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Requirements to set up a company

Qatar has certain specific guidelines and requirements for foreign entrepreneurs interested in operating business in the free zones or elsewhere.

Requirements for employees wishing to relocate

Work permits may be obtained only by local sponsors. Employees satisfying certain criteria may sponsor their immediate family to enable them to obtain a residence permit. Holders of work visas require an exit permit to leave Qatar; however, their dependents do not require such a permit while travelling abroad. It is essential for permanent residents in Qatar to obtain an identity card. The ID card is essential when dealing with Government ministries on a day to day basis. Applications for residence permits are made after arrival in Qatar through the Immigration Department, these are becoming increasingly straightforward to arrange, and are normally available within 6 weeks of arrival. Family dependents' also receive residence permits and are deemed under the sponsorship of the family member employed in Qatar.